In his recent address to SIFMA, CFTC Chairman Massad emphasized the CFTC plan to focus on cross border harmonization of rules, something we have long advocated that is made even more critical by Brexit.
This fall, I also expect the Commission will consider a rule addressing certain aspects of the cross-border application of our swaps rules. Of course, we’ve been addressing cross-border issues and cross-border harmonization in many ways. We harmonized margin requirements, reached an equivalence accord with Europe on clearinghouse regulation, and are helping to lead the international work taking place on clearinghouse resilience, recovery and resolution that I described earlier. I have often said that physical activity within the territory of the Unites States is a traditional basis for jurisdiction, and should be when it comes to our rules as well. The question is which particular standards or rules should apply when transactions involve arranging, negotiating or executing a swap in the U.S. That is what I hope we can begin to consider in a rule-making this fall.